Two assets
Every deposit splits into two instruments with two different jobs. Understanding the split is understanding loom.
lUSD — the liquidity
lUSD is a plain ERC-20, minted at deposit time for whatever share of your principal you chose to free (0–80%). It is fungible: the 800 lUSD from your deposit is indistinguishable from anyone else's. Use it however you use a stablecoin — trade it, provide liquidity, or swap it back to USDC and loop.
Every unit of lUSD in existence is matched one-for-one by recorded debt on some unredeemed receipt. The supply cannot exceed the debt, and the debt is always over-collateralized by locked principal — at the 80% cap, by at least 125%. What holds its market price near a dollar is an arbitrage corridor, not a promise; that mechanism has its own page.
The receipt — the claim
The receipt is a transferable ERC-721 minted alongside your lUSD. It records, immutably:
| Field | Meaning |
|---|---|
principal | what you deposited, in the asset's own units |
shares | your slice of the yield vault — this is what grows |
debtAmount | the exact lUSD that must be burned to redeem |
mintRatioBps | the ratio you chose at mint |
unlockTime | mint time + the market's withdrawal delay (T+2) |
The receipt is the whole claim: whoever holds it owns the right to the principal and all yield it has accrued — and owes the recorded debt to unlock it. Transfer the NFT and you transfer the position, debt and all. That's what makes it sellable.
Exit is a trade, not an unwind
The two-asset split exists to make exit liquid. You have three ways out, none of which require reversing your steps:
- Redeem at maturity — after unlock, burn the recorded lUSD, take principal + yield. See Redemption & fees.
- Sell the claim — list the receipt on the receipt market for lUSD, at your price, any time — locked or not. The buyer takes over the claim and the debt.
- Keep the liquidity, sell the exposure — your lUSD is already liquid; the receipt is the only thing left to place.
A position in loom is never stuck behind its own timeline: the timeline belongs to the receipt, and the receipt has a market.